OREANDA-NEWS. On 27 March 2008 ОJSC RTM released its ISFR-compliant interim consolidated financial statements for the nine months period ending on September 30, 2007.

According to the statements the revenue received from the leased OJSC RTM’s properties held as investment grew 4.2-fold against the same period in 2006 and reached \\$40.2 mln. The net operating margin (excluding the gain on revaluation of the investment-grade real estate) also showed considerable growth at 60.6 per cent against 35.5 per cent for the same period in 2006.

OJSC RTM’s key financial results in the first 9 months of 2007:
• Income from investment-grade properties reached \\$40.2 mln., a 4.2-fold increase against the same period in 2006;
• Equity grew 149.3 per cent since December 31, 2006 reaching \\$347.5 mln;
• Shareholders’ equity in the balance sheet total amounted to 48% against 28% at the beginning of the year, or increased by 20 percentage points;
• Balance sheet total now stands at \\$724.5 mln., a 45.6 per cent increase since December 31, 2006;
• Balance sheet value of the real estate portfolio amounted to \\$602.8 mln, which is a 60.3% increase compared to \\$376.2 mln at  the beginning of the calculation period;
• Net financial debt fell to \\$230.9 mln., a 5 per cent drop against December 31, 2006.
• Operating profit net of revaluation surplus, has exceeded the net interest and reached 1.14 ratio compared to 0.77 recorded within 9 months of 2007.
“The statements we have released demonstrate that our focus on implementing our stated investment program remains unchanged“, notes Eduard Vyrypayev, General Director of OJSC RTM. “The four-fold plus increase in revenues as well as the marked growth of operating margin coupled with a drop in net debt, are proof positive of the success of our chosen strategy. The growth was primarily driven by the commissioning of new sites thus generating additional cash flow and by more effective management of existing properties. This success is also largely owed to the decision to set up within the RTM Group a managing company, RTM Management. The current year, 2008, is going to be very important for the RTM Group. In addition to following through the existing projects we have augmented our plans with such business innovations as acquisition of land plots for implementation of our mixed-use and comprehensive housing development projects. This being said, we do not rule out shedding some of the properties in our portfolio if we feel that they are not properly aligned with the RTM Group’s business strategy. The funds we intend to raise by way of selling some of our projects as well as some of the funds raised as the result of the additional issue of shares will be earmarked for the implementation of new promising projects and for the restructuring of the company’s credit portfolio".

During the reporting period, the RTM Group commissioned a 13,405.5 sq. m. shopping center in Tula (the Demidovsky Shopping Center) as well as 2,487.5 sq. m. of retail space in Stavropol (part of the Kosmos Shopping Center). Also completed was the refurbishment of two sites in St. Petersburg (the 2,816.1 sq. m. Ulyanka Shopping Center and the 1,763 sq. m. Blindonalds Shopping Center).

In 2008 the RTM Group is going to commission a 24,840 sq. m. shopping and entertainment center in St. Petersburg (in the vicinity of Kupchino metro station) and a 4,522 sq. m. office center in Moscow. According to a forecast by independent valuators Colliers International, implementation of these two sites will bring the company an additional \\$8 mln of stable annual income.